Facts:
The consolidated petitions arose from two collection suits filed by
Sunset View Condominium Corporation, the condominium corporation managing the Sunset View Condominium Project at 2230 Roxas Boulevard, Pasay City, and holder of title to the common and limited common areas, against two assignees of condominium units and the presiding judge of the trial courts. In G.R. No. 52361 the defendant
Aguilar-Bernares Realty, assignee of unit “Solana” from La Perla Commercial, Incorporated, which in turn bought on installment from Tower Builders, Inc., was sued by plaintiff by complaint dated June 22, 1979 in Civil Case No. 7303‑P, Court of First Instance, Branch XXX, for unpaid assessments; the defendant moved to dismiss on grounds including lack of jurisdiction and the trial judge granted the motion on December 11, 1979, holding that the defendant was a
“holder of a separate interest” under
Republic Act No. 4726 and thus a shareholder of the condominium corporation and that the controversy was within the exclusive original jurisdiction of the
Securities & Exchange Commission, and the motion for reconsideration was denied. In G.R. No. 52524 the defendant
Lim Siu Leng, assignee of unit “Alegria” by assignment from Alfonso Uy who had a Contract to Buy and Sell with Tower Builders, Inc., was sued by amended complaint dated July 16, 1979 in Civil Case No. 14127, City Court of Pasay City, for collection of assessments and insurance premiums amounting to P6,168.06; the defendant moved to dismiss contending she was automatically a shareholder under
Section 2, Republic Act No. 4726 and that the dispute was intra‑corporate and therefore within the exclusive jurisdiction of the
Securities & Exchange Commission under
Section 5, P.D. No. 902‑A; the City Court initially denied the motion, the defendant appealed pursuant to
Section 10, Rule 40, to the Court of First Instance where the respondent judge ultimately dismissed the appeal, reversed the lower court and ordered the parties to ventilate their controversy with the
Securities & Exchange Commission in an order dated December 14, 1979, and the petitioner filed these petitions for certiorari alleging grave abuse of discretion by the respondent judge; the petitions were consolidated and decided by this Court on April 27, 1981.
Issues:
Is a purchaser of a condominium unit who has not fully paid the purchase price automatically a shareholder of the condominium corporation under
Republic Act No. 4726? Is the regular court or the
Securities & Exchange Commission vested with jurisdiction to hear collection suits for assessments levied by a condominium corporation against purchasers who have not fully paid for their units?
Ruling:
Ratio:
Doctrine: